Time:2025-04-23
Author:Zhuo Xin
Source:Zhuo Xin
Views:184Saudi Arabia, the largest economic power in the Middle East, holds 25% of the world's crude oil reserves and has a total GDP of over one trillion US dollars. Under the reform wave of "Vision 2030", Saudi Arabia is reshaping its business landscape with trillion-dollar infrastructure investment, foreign investment access relaxation, and digital revolution, becoming a strategic hub for global companies to enter the Middle East, North Africa and East Africa markets. However, the complex legal framework, cultural differences and approval processes often make it difficult for companies to move forward - choose Zhuoxin Enterprise's professional agency service to complete Saudi company registration and compliance implementation in one stop, allowing you to efficiently seize the opportunity and share the transformation dividend!
Foreign investment access is fully open
The new Foreign Investment Law of 2021 removes restrictions on foreign shareholding in 80+ industries (such as retail, manufacturing, and engineering), allowing 100% foreign holding; free zones (such as King Abdullah Economic City KAEC) enjoy the privilege of sole ownership in all industries.
Tax policies are extremely competitive
Corporate income tax as low as 0%: free zone companies enjoy a 10-20 year tax exemption period, and some technology companies can be permanently tax-free.
Personal income tax exemption: no shareholder dividend tax or salary tax.
Value-added tax (VAT) concessions: the standard tax rate is 15%, but exports and international services are subject to 0%.
Market potential of hundreds of billions of yuan
The largest consumer market in the Middle East, 70% of the 35 million population are young people under the age of 30, and the demand for e-commerce, financial technology, and entertainment has exploded.
Double drive of infrastructure and policies
By 2030, it is planned to invest more than US$1.2 trillion in smart cities and new energy projects (such as NEOM Future City and Red Sea Tourism Zone), and foreign companies can bid for government PPP projects.
Excellent regional influence
Located at the intersection of Asia, Africa and Europe, the annual throughput of Jeddah Port and Dammam Port exceeds 18 million TEUs, covering the markets of 20 countries in the Middle East, North Africa and East Africa.
Digital business environment
Enterprise registration is fully online, the electronic visa system is approved within 48 hours, and government service efficiency has increased by 60%.
Energy and Industry: Green hydrogen production, petrochemical refining, renewable energy equipment (Saudi Arabia plans to have 50% of its energy come from renewable energy by 2030)
Technology and Innovation: Artificial Intelligence, Cloud Computing, Cybersecurity (Saudi Arabia government sets up $20 billion technology fund)
Infrastructure and Engineering: Smart City Development, Transportation Network (Metro, High-speed Rail), Seawater Desalination Project
Consumption and Retail: Luxury goods, cross-border e-commerce, healthy food (retail market size will reach $220 billion in 2025)
Medical and Education: High-end private hospitals, international schools, vocational training (government plans to add 500,000 international school places)
Tourism and Entertainment: Theme Parks, Hotel Management, E-sports Industry (targeting 100 million tourists by 2030)
Logistics and Trade: Bonded Warehousing, Automobile Transit, Cold Chain Logistics (Jeddah Free Trade Zone provides zero-tariff customs clearance)
Common types of companies in Saudi Arabia include Limited Liability Companies (LLC), Joint Ventures, and Branch Offices.
Limited Liability Companies: Limited Liability Companies are the most common business entity and investment form in Saudi Arabia. Only 1 director and 2-50 shareholders are required to set up this type of entity.
Stock Companies: At least 5 shareholders are required to set up a stock company, and the shareholders hold transferable shares.
Partnerships: Foreign companies can enter the Saudi market in the form of limited partnerships. Limited partnerships are independent business entities that can be made up of several individuals or companies.
Branch Offices: Foreign companies can register a wholly foreign-owned Saudi branch with the necessary licenses. The branch can engage in any government contracting and private sector work within the scope of the license.
Representative Offices: Saudi law allows foreign parties to set up representative offices in the form of technical and scientific offices and temporary company registrations. Technical and scientific offices are generally established to provide technical support to manufacturers through distributors.
Company name verification
Signing of entrustment agreement
Organizing board resolutions, POA and document signatures
Submitting documents for notarization and certification
Submitting Saudi Arabia registration application
After registration, receiving CR documents and signing AOA (Articles of Association)
General manager goes to Saudi Arabia to activate Absher
Establishing a physical office
Obtaining municipal
It usually takes 8-10 weeks.
Company Name and Office Address
Choosing and registering a company name: Make sure there are no duplicate company names. You can search for it on the Saudi General Investment Authority (SAGIA).
Renting an office address: You need to have a legal office address in Saudi Arabia, which can be a shared office space.
Time: 1-2 weeks, depending on the address rental situation.
Prepare registration documents:
Registration documents: including articles of association, shareholder resolutions, shareholders, directors’ passports, ID cards, address proof, company business plan, etc.
Notarization and translation: valid business registration certificate certified by the Saudi Embassy and the Ministry of Foreign Affairs, articles of association, shareholder resolutions, copies of the general manager’s passport and ID card, customs clearance and good conduct certificates.
Company location lease contract, shareholder authorization letter.
1. VAT: In accordance with the requirements of the GCC VAT Unification Agreement, Saudi Arabia promulgated the VAT Implementation Regulations approved by Resolution No. 3839 of the General Authority of Zakat and Taxation on September 5, 2017, stipulating that VAT will be levied from January 1, 2018 at a rate of 5%. In May 2020, Saudi Arabia increased the standard VAT rate from 5% to 15%.
2. Corporate income tax: The standard corporate income tax rate in Saudi Arabia is 20%, applicable to resident enterprises, non-Saudi resident natural persons, and non-resident enterprises or non-resident taxpayers engaged in business activities through permanent establishments.
3. Consumption tax: Saudi Arabia began to levy consumption tax in June 2017, and the taxable objects are specific goods such as tobacco products, soft drinks and energy drinks.
4. Zakat tax: Zakat tax is a tax levied according to Islamic law, which is only levied on Saudi citizens and is also known as "Zakat". Taxpayers include all Saudi individuals, shareholders of all companies whose shares are held by Saudi citizens, and Saudi shareholders in Saudi-foreign joint ventures. The tax base is all assets of the taxpayer and all income, profits, dividends, bonuses and other income generated by business activities, and the tax rate is 2.5%.
The specific requirements for company registration in Saudi Arabia vary according to the needs of Chinese investors. Here are several common types of companies and the basic materials required for their registration:
Limited Liability Company (LLC)
The most common form of company, suitable for medium and large Chinese companies.
Capital: The minimum capital requirement is 500,000 Saudi riyals.
Shareholders and Directors: At least two shareholders and two directors are required.
Registered Address: Must have a registered address in Saudi Arabia.
Registration Materials: Articles of Association, List of Directors and Shareholders, Proof of Registered Address, etc.
Joint Venture
Suitable for Chinese companies that cooperate with local companies.
Capital: The minimum capital requirement is high, usually 1 million Saudi riyals.
Directors and Supervisors: At least three directors and one supervisor are required.
Registered Address: Must have a registered address in Saudi Arabia.
Registration Materials: Articles of Association, List of Directors and Shareholders, Proof of Registered Address, etc.
Branch Office
Suitable for foreign companies that wish to set up branches in Saudi Arabia.
Capital: There is no minimum capital requirement.
Agent: A Saudi resident must be appointed as an agent.
Registered address: A registered address in Saudi Arabia is required.
Registration information: Articles of association of the parent company, list of directors, proof of registered address, etc.
In the process of registering a company in Saudi Arabia, Chinese investors need to understand and estimate a series of related fees. The following are the main fee categories and explanations:
Capital
Registered capital: Saudi Arabia has clear requirements for the minimum registered capital. It is recommended that the registered capital amount is reasonable and reflects the company's size and business needs.
Registration fees
Registration fees: Registration fees are required for registering a limited liability company (LLC), a joint venture, and a branch office.
Stamp duty: Stamp duty is required for the company's articles of association.
Notarization and translation fees
Document translation: Documents such as the company's articles of association, shareholder and director lists need to be translated, and the fee depends on the number of documents and the translation company's charging standards.
Notarization fees: Foreign documents need to be notarized, and the fee depends on the number of documents and the notary office's charging standards.
Office address
Rental fees: The cost of renting an office address depends on the city and specific location, and the rental fee varies from region to region.
Registering a virtual address: Using a virtual office address can reduce costs, and the specific fees are more flexible.
Opening a bank account
Bank account opening fees: Some banks may charge an account opening fee, the specific amount depends on the bank's policy.
Consulting and agency services
Company registration agency fees: If you choose a third-party agency to assist in registration, the fees vary depending on the service content and company size.
Legal and tax consulting fees: Legal and tax consulting fees depend on service time and specific needs.
Making seals
Company seals: In Saudi Arabia, companies need to have seals (Seal) to sign contracts and documents, and the corresponding fees are required to make seals.
Other costs
Miscellaneous costs: may include postage, transportation costs, etc., depending on actual conditions.
Cost summary
The overall cost of registering a company in Saudi Arabia varies depending on the size of the company and specific needs. In order to understand the specific costs more accurately, it is recommended that Chinese investors consult us in detail before registration. Zhuoxin Enterprise will provide you with professional support throughout the process to ensure a smooth registration process.
The minimum registered capital for a limited liability company in Saudi Arabia with general foreign participation is 500,000 Saudi Riyals, and it must be paid up; for companies engaged in trade, the minimum registered capital is typically 30 million Saudi Riyals, also requiring full payment. (Adam)
The process of registering a company in Saudi Arabia generally includes determining the company type and name, submitting a foreign investment application to the Saudi Arabian General Investment Authority (MISA), preparing registration materials, business registration, and subsequent department registrations. If all documents are complete and meet the requirements, it typically takes about 3-6 months from the application for investment approval to obtaining the business registration certificate. (Adam)
Registering a company in Saudi Arabia requires at least one shareholder and one director. The number of shareholders in a limited liability company can range from 1 to 50. If the number exceeds 20, a board of directors must be established. At least one director must hold a Saudi signature and residency certificate. (Adam)
Common types of companies registered in Saudi Arabia include Limited Liability Companies (LLC), Joint Stock Companies, Branch Companies, and Joint Ventures. Limited Liability Companies have shareholders with limited liability and usually require a local partner; Joint Stock Companies are suitable for large-scale commercial activities with higher capital and management requirements; Branch Companies do not have independent legal status and are dependent on the parent company; Joint Ventures involve collaboration with local or other partners. (Adam)
Zhuoxin Consulting relies on its Chinese service network and Dubai executive team to provide professional one-stop business services without communication barriers for Chinese companies to enter the Middle East market. Its business covers company establishment and maintenance, accounting and taxation, bank account opening, PRO services and business services.
Zhuoxin Consulting has high-quality business resources and maintains close cooperation with many free zones, bankers and tax departments in the UAE to escort your expansion in the Middle East market.
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